22 Nov 2022

Last night, the three major U.S. stock indexes fluctuated and closed down, with new energy vehicle stocks, popular Chinese concept stocks, and charging piles leading the decline. As of the close, the Dow fell 0.13%, the Nasdaq fell 1.09%, and the S&P fell 0.39%. The U.S. 10-year Treasury yield fell 0.052% to close at 3.831%. Compared with the two-year Treasury yield difference of -73 basis points, the U.S. 2-year and 10-year Treasury yield curves are inverting to a new record. The panic index VIX fell 3.29%. Brent crude oil settled down 0.84%. Spot gold closed down 0.66% at $1,739.18 an ounce. The U.S. dollar index remained high, closing at 107.84.

Saudi Arabia and other OPEC members are considering raising output by as much as 500,000 bpd, the sources said. U.S. and Brent crude oil prices fell 5% within a day, both hitting new lows this year. The front-month Brent crude oil futures contract entered into a contango for the first time since August compared with the next-month contract. Saudi Arabia subsequently denied reports that an OPEC+ production increase was discussed. The Saudi Oil Minister stated that the current production cut of 2 million barrels per day will continue until the end of 2023. If further production reduction measures are needed to balance supply and demand, we are ready to intervene at any time. After Saudi Arabia denied the discussion of increasing production, WTI crude oil turned up and returned to above $80/barrel; the decline of Brent crude oil narrowed to less than 0.5%. Before that, both oil in the United States and Burundi fell by more than 6%.

German Deputy Chancellor and Economy Minister Habeck said the government would introduce a brake on gas and electricity prices on Tuesday. The UK government has announced a £484m worth of directed investment schemes to support UK research as a result of "the EU's rejection of UK access to the EU's Horizon programme, Euratom programme, and energy fusion programme". European Central Bank Governing Council Holzmann: If the situation remains unchanged, support the European Central Bank to raise interest rates by 75 basis points next month; but if the CPI falls sharply, support the European Central Bank to raise interest rates by 50 basis points.

According to TASS: The head of Rosatom said there is a risk of a nuclear accident at the Zaporozhye nuclear power plant. Ukraine said it would raise the (transportation) charges on the Friendship pipeline, raising oil transit fees to 13.60 euros per tonne from 2023, as the Russian attack increased costs. A spokesman for Russian President Vladimir Putin said the Kremlin had not discussed a new military mobilization plan. The U.S. Treasury Department said it would extend the license to pay taxes and import duties to Russia until March 7, 2023.

Moody's said that as U.S. consumers tighten their spending, there is growing evidence of weaker economic activity; the headline and core inflation rates are expected to decline in the U.S. in 2023 and 2024; The first rate cut of 25-50 basis points is likely in November 2023, with a shift to a neutral policy stance in 2025.

Fed Daly said that the actual impact of the Fed's interest rate hike may be higher than the current interest rate target implies. Will peak around 5%, and if inflation data does not cool, the Fed can raise interest rates above 5%; did not rule out any possibility at the FOMC meeting in December. The Fed's Mester said that the Fed's policy has just entered a restrictive stance and does not believe that it is close to stopping interest rate hikes; if it does not see meaningful progress on inflation next year, the Fed will need to respond.

Apple fell 2.17%. Apple China’s official website shows that the waiting time for the iPhone 14 Pro/Pro Max has been extended from about 4-5 weeks to 5-6 weeks, and will be January 2023 at the latest; global tablet shipments in the third quarter Apple and Samsung Electronics accounted for 60% of the 38.4 million units.

Amazon fell 1.78%, considering investing hundreds of millions of dollars in the Argos platform; JPMorgan analyst Doug Anmuth expects U.S. Thanksgiving and Black Friday online retail sales to grow by 7.5% year-on-year, down from 9.7% last year.

Tesla fell 6.84%, and its stock price continued to hit a two-year low. On November 15, Tesla recalled 320,000 electric vehicles in the United States, and there were intermittent problems with the taillights; For Twitter employees, the target of this layoff is the sales and cooperation business department.

Meta fell 1.95%. Meta openly recruited VP-level AR/VR chip leaders; advertisers are beginning to shift from Meta and YouTube to TikTok.

Disney rose 6.3%, announcing that former CEO Bob Iger will succeed Bob Chapek as CEO of the company.

TSMC fell 2.84%, planning to build a 3-nanometer chip production line in Arizona, USA; industry rumors that Tesla's new autopilot (FSD) chips next year will focus on ordering TSMC for 4/5-nanometer production.

Micron fell 2.42%. LPDDR5X memory has been mass-produced and shipped after being incorporated into the main architecture design of the Qualcomm Snapdragon 8 Gen 2 chip.

Sony fell 1.62%, and a joint venture with Honda Motor plans to build an electric car around music, movies and the PlayStation 5 to fight Tesla.

Merck rose 1.32%, and will acquire Imago Biosciences (IMGO.O) for $36 per share in cash to expand its portfolio in hematology; Imago rose 105.54%.

Sources from: Investing.com; Reuters.com

Louis Yap

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